Critical Illness Cover Doesn’t Pay Out? Think Again

May 10, 2009  //  Posted by: admin  //  Category: Uncategorized

There are plenty of people who just think that Critical Illness Insurance Cover is a con and doesn’t pay out. These people are often very vocal about their opinion and rarely back down even when presented with the correct information.
It’s good to see then, that Life Assurance companies publish their claims settlement history to counteract these opinions. This year Scottish Provident published their claims settlement history from January through to June. During this period Scottish Provident paid out £51,616,715 in Critical Illness Cover claims.
The figures make for very interesting reading. Here are just a few of the statistics published:-
• 703 claims paid
• 87.3% of claims paid
• Average payout £73423
• Largest claim value £552487
• Average age of claimant 44
• Average months in force before claim 73
So first of all 12.7% of claims were not paid out which equates to 102 claims. Of these 10.8% of the claims did not the critical illness definition and 1.9% were declined due to ‘non-disclosure.’ Non-disclosure means that the applicants failed to disclose all of their past medical history at application. It’s important to tell the life assurance company EVERYTHING. Don’t give them an excuse not to pay out!
Breaking the figures down further we can see the claims were paid out:-
• Cancer 378 claims equating to £30,501,924. The average age of claimant was 46
• Heart attack 86 claims equating to £5,619,252. The average age of claimant was 48
• Stroke 62 claims equating to £4,476,089. The average age of claimant was 44
• Children’s benefit equating to £782,463. The average age of claimant was 11!
• Multiple Sclerosis 33 claims equating to £2,364754. The average age of claimant was 40
• the list goes on…
Not very pleasant reading really especially the children’s benefit statistics. What is surprising is the average age of claimants in that people often have a perception that only ‘old age pensioners’ suffer from heart-attacks and strokes. The real statistics tell a different story.

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September 21, 2008  //  Posted by: admin  //  Category: Uncategorized

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